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AMAT vs TXN

AMAT
Applied Materials, Inc.
NEUTRAL
Price
$341.79
Market Cap
$271.25B
Sector
Technology
AI Confidence
80%
TXN
Texas Instruments Incorporated
NEUTRAL
Price
$269.50
Market Cap
$245.27B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AMAT
35.02
TXN
46.07
Forward P/E
AMAT
24.69
TXN
29.49
P/B Ratio
AMAT
12.49
TXN
14.62
P/S Ratio
AMAT
9.61
TXN
13.3
EV/EBITDA
AMAT
30.37
TXN
29.34

Profitability

Gross Margin
AMAT
48.72%
TXN
57.32%
Operating Margin
AMAT
29.89%
TXN
37.82%
Profit Margin
AMAT
27.78%
TXN
29.11%
ROE
AMAT
38.86%
TXN
32.35%
ROA
AMAT
14.85%
TXN
12.16%

Growth

Revenue Growth
AMAT
-2.1%
TXN
18.6%
Earnings Growth
AMAT
75.2%
TXN
31.3%

Financial Health

Debt/Equity
AMAT
0.33
TXN
0.84
Current Ratio
AMAT
2.71
TXN
4.46
Quick Ratio
AMAT
1.74
TXN
2.83

Dividends

Dividend Yield
AMAT
0.66%
TXN
2.11%
Payout Ratio
AMAT
18.26%
TXN
95.04%

AI Verdict

AMAT NEUTRAL

AMAT shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 9/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (27.8% margin)
Strong financial trend (Piotroski F-Score: 9/9)
Low debt with D/E ratio of 0.33
Risks
High valuation with P/E of 35.0
Premium vs Graham Number ($77.52)
Declining revenue (-2.1%)
TXN NEUTRAL

TXN exhibits a stable but not strong Piotroski F-Score of 4/9, reflecting a period of transition or decelerating financial efficiency despite strong operational margins. The stock is trading at a severe premium, with a current price of $269.50 far exceeding both the Graham Number ($49.26) and the Intrinsic Value ($172.57). While earnings growth (31.3% YoY) and profitability (ROE 32.35%) are exceptional, these are offset by a dangerously high dividend payout ratio of 95.04% and bearish insider activity. The company remains an operational powerhouse, but the valuation suggests significant downside risk if growth expectations are not met.

Strengths
Exceptional profitability with an Operating Margin of 37.82% and ROE of 32.35%
Strong growth trajectory with 31.3% YoY earnings growth and 18.6% revenue growth
Excellent liquidity position evidenced by a Current Ratio of 4.46 and Quick Ratio of 2.83
Risks
Extreme valuation premium (P/E 46.07, P/B 14.62) relative to historical and defensive norms
Unsustainable dividend payout ratio of 95.04%, leaving little room for error or reinvestment
High geopolitical risk with 50% of products shipped into China

Compare Another Pair

AMAT vs TXN: Head-to-Head Comparison

This page compares Applied Materials, Inc. (AMAT) and Texas Instruments Incorporated (TXN) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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